When comparing the interest rates for U.S. government securities, which of the following is correct?

Question

Quizplus · Accepted Answer

Treasury bills (T-bills) are short-term government securities with maturity periods of one year or less. Treasury notes (T-notes) are medium-term securities with maturity periods between two and ten years. Lastly, Treasury bonds (T-bonds) are long-term government securities with maturity periods over ten years. As a rule, longer-term securities offer higher interest rates compared to shorter-term securities. Therefore, Treasury bills have lower interest rates than Treasury notes, which have lower interest rates than Treasury bonds. Hence, option B is the correct answer.

When Comparing the Interest Rates for U